Cisco Systems Inc. reported a better-than-expected showing in its fiscal fourth quarter last week. The company generated $7.63 billion in networking revenue, up 12% year-over-year. The company’s net income more than quadrupled, soaring to $2.82 billion, or 71 cents a share. That’s nearly double last year’s $2.16 billion, or 54 cents per share profit posted in the third quarter last year. After years of warning on earnings, Cisco surprises with a big earnings beat. The company beat the lowball analysts’ estimates, which expected something like $7.34 billion in revenue.
For the entire 2025 fiscal year, Cisco brought in more than $2 billion in earnings—more than twice its original target. This recent accomplishment is indicative of the company’s exceptional operational efficiency. It further emphasizes its competitive positioning as a prime beneficiary of the current infrastructure cycle boom, supercharged by AI and Data Center growth. As CEO Chuck Robbins said on their last earnings call, the company is now positioned to take advantage of the surging demand for AI-related infrastructure.
Cisco continued to make encouraging projections heading into the third and final quarter of Cisco’s fiscal full FY 2026. They are expecting to see adjusted earnings per share of $4-$4.06, as well as revenue guidance of $59 billion-$60 billion. Management has guided to a fiscal first quarter adjusted earnings per share of 97 cents to 99 cents. They look for revenues of between $14.65 billion and $14.85 billion.
In light of its overall robust financial picture, we’re tracking Cisco’s strategic positioning quickly progressing into AI-smarts. The corporation has extraordinary news to share with its distinctive participation in a Stargate data center initiative in the Center East. They’re partnering with heavyweights like OpenAI and SoftBank to do so! This initiative aims to enhance the region’s data infrastructure and aligns with Cisco’s vision of integrating advanced technologies into its offerings.
In addition to these new switches and routers born to support AI workloads, Cisco has announced other AI-related capabilities. North Carolina and Rhode Island both states are focused on a wider strategy to invest in AI infrastructure. This collaborative effort includes partnerships with BlackRock, Microsoft, and other major players across the sector. The company reported that its AI infrastructure orders from web companies alone reached $800 million during the last quarter, indicating a growing interest and investment in this area.
Due to these innovations and smart collaborations, Cisco’s share price increased a whopping 19% over the year 2025. The S&P 500 barely rose 10% over that same period. This trend paints a positive picture for investor sentiment as Cisco continues to cement its growth potential during this exciting period of tech transformation.